Analysis of the Application of Target Costing as a Production Cost Control System Empirical Study on CV Cahaya Gemilang Teknik

Fitria Saumaningsih () and Nur Alim Bahri
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Fitria Saumaningsih: Universitas Nusa Putra, Department of Accountancy
Nur Alim Bahri: Universitas Nusa Putra, Department of Accountancy

A chapter in Proceedings of the International Conference on Economics, Management, and Accounting (ICEMAC 2022), 2023, pp 202-214 from Springer

Abstract: Abstract Costing target is a method of profit planning and cost management that is focused on products and takes into account the manufacturing process in order to strive for cost control. The goal of this study is to examine how the costing target method is used to control production costs and to evaluate how it compares to other cost control methods currently in use by businesses. This kind of study employs descriptive qualitative methods. The information gathered for this study was based on both primary data interviews and obsevations and secondary data documentation. By taking into account the cost of product quality and profits realized, the costing target method can assist management in redesigning products and is a good method for reducing production costs. The Costing Target method is a good alternative to pressing some costs, it can be known that the production costs before applying the costing target for the cabinet with three doors are about Rp.3,266,500,- and the 311 selini sofa they are about Rp.3,480,500,- per unit, the Costing Target Method has a positive impact on achieving the profits. The profit before using the target costing method is Rp.1,233,500,- for a cabinet with three doors and Rp.1,019,500,- for a sofa, but the profit after using the target costing method is Rp.1.350.000,- and Rp.1.125.000,- per unit for cabinets with three doors and sofas.

Keywords: Cost Control; Costing Target (search for similar items in EconPapers)
Date: 2023
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DOI: 10.2991/978-94-6463-226-2_18

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